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Options-strategy

Nifty strategy in this volatile marketNifty CMP 7765 Nifty has been very volatile and it has been swinging 500 points just like that.... What use to take months now is happening in a couple of hours... So what can one do in such situation Option 1 is stay away from market Option 2 Trade with more focus on risk management. For the current market conditions One may consider the following strategy Sell Nifty Put Option Lot Size:75 Expiry: 30 April 2020 Strike Price: 6100 CMP 250 Any price above 6100 in Nifty on 30 April 2020 can yield a Maximum profit potential of Rs 18750/- (Profit potential of approximately 30% on margin ) per lot Loss in strategy only if Nifty closes below 5870 on 30 April 2020 That is a good 1800 points protection ( in simple words in built Protection against loss of Rs 135000/ -) Take care & safe trading...!!! Do hit the like button and follow us
NSE:NIFTY
by indiamarketoutlook
2
While Nifty did made some attempt to pullback, the same was While Nifty did made some attempt to pullback, the same was absent on BankNifty. The movement on the index was weaker than that of nifty and a clear divergence was noticed. Disparity among these two index espically Banknifty lagging is not a sign of strength. While the RSI is into bearish zone below 20 the macd histogram is soaring red, indicating sellers are in no mood to stay back. Below 18650 the index may further slip to 13200 levels. However to prove itself strong the stock has to pull above 21900 the index may pull up to 24500 & 28000 levels.
NSE:BANKNIFTY
by BharatJhunjhunwala
1
The USDINR is trending up, a small divergence was created on RSIIn our last analysis for USDINR, the set target was 74, which was met this week. The minimum target of the pattern has been attained. The pair surpassed its previous highs and retraced back. The USDINR is trending up, a small divergence was created on RSI after which a correction took place on Friday. 73.55 is short term support for the pair, if it manages to close itself above it then we may further see advance in it. The upside targets for the pair are placed at 74.70, 75.50 & 77.50 if the 73.55 levels is safe. Below 73.55 the correction may extend to 72.60, 71.30 & 70.75 levels.
by BharatJhunjhunwala
RSI being heavily oversold the stock may pullbackThe stock 1101 during the day pulling back to close at 1134. Comparing close to close the stock corrected 1.43% compared to Bank Nifty overall. Now the stock is at a support. RSI being heavily oversold the stock may pullback from the current levels to 1160 – 1180 levels, however failing to cross them or creating bear candles at the levels may result into further selling. If selling beings again then the stock may find support at 1095, 1050 levels below which the target is deep towards 890 zones.
NSE:HDFCBANK
by BharatJhunjhunwala
If nifty fails to move above 12300 then most probably it willNifty ended up in a state of confusion. There was no defined action, being the week ending on weekly expiry this was much expected. However Nifty seems to be under pressure. The 12300 levels are intact from last few weeks and has been acting as a effective resistance. If nifty fails to move above 12300 then most probably it will test 11990, 11850 & 11600 in the weeks to come, to get its bullish signature back Nifty needs to break above 12300. Above 12300 we may see Nifty move up to 12390 – 12650 levels.
NSE:NIFTY
by BharatJhunjhunwala
Short term support is at 12040 below it Nifty may fall to 11840.The weekly chart of Nifty displays strong comeback from buyers. The piercing bull candle in uptrend is a clear sign of strength. In the last session Nifty ended after a volatile session creating a narrow range candle, the daily prices halted at 61.8% retracement of the corrective leg. The RSI taking resistance at 45 ma and curling down while MACD is into bearish zone, indicate the momentum needs to be boosted further to maintain the overall trend up. Short term support is at 12040 below it Nifty may fall to 11840. If Nifty is able to maintain itself above 12040 it may rally to 12430 & 13000 levels.
NSE:NIFTY
by BharatJhunjhunwala
Holding the 30500 levels the index may move to 31900, 32800 Notice that we have marked a very bullish scenario on the index. We believe that the budget can be a vitamin for the expected move. The index has been displaying strength & have hold on to an important pivot point on the chart. 30500 is a very important pivot for the index, if it holds here then a good move up is possible. Below this a sharp correction may grab the banknifty. The RSI is into positive to sideways zone while MACD has tripped into bearish zone. Holding the 30500 levels the index may move to 31900, 32800 & 33200 zones. 31160 is a minor resistance.
NSE:BANKNIFTY
by BharatJhunjhunwala
This can move Nifty.... Since couple of weeks this mammoth was taking a nap, today’s price action seems to wake it up. A bounce from the support area with a bullish candle is indicative of the underlying strength in the stock. The RSI is into bullish zone and MACD too into bullish area taking support on neutral zone. The momentum is turning up in the coming sessions the stock is expected to move to 1650 – 1700 levels, 1590 may create a little hurdle to the move up, the levels may be very much real above 1590.
NSE:RELIANCELong
by BharatJhunjhunwala
Nifty is creating a value area, moving above it is necessary...The index created a new high this week, failing to close above it. The small body candles are creating a value area at the highs, it’s very important for Nifty to move above this value area to establish strength, the rally is fueled by small and mid caps, Nifty should support this overall movement. While the RSI is displaying divergence, the major momentum doesn't seems to be affected. MACD is bullish above zero line with a minor divergence. A move above the value area 12400 shall push Nifty to 12545 & 12930 levels (this is unchartered territory) 12170 levels will serve as strong support to the index below which it can be dragged to 12000 levels, though 12170 is a very strong support.
NSE:NIFTY
by BharatJhunjhunwala
. A sustenance above 12290 may push up the prices to .....The index pulled back in a great way after the Middle East tensions. The prices halted at the previous highs. The momentum (RSI) is into a sideways zone and still diverging with the price. A sustenance above 12290 may push up the prices to 12360 – 12500 levels, however any failure to sustain above the levels may push nifty to 11930 where it may find support. The MACD is above zero line (bullish) while RSI has slided between 60-40.
NSE:NIFTY
by BharatJhunjhunwala
31450 levels will serve as a strong support to the index....Finally a eventful week ends. This week made trading the most difficult task. Price actions were impacted by the tensions between Middle East and US. In the end the indices did manage to sustain most of the losses that were made by the attack news. The last candle on bank nifty was undeceive though the weekly close resulted into a hammer.31450 levels will serve as a strong support to the index, if bank nifty sustains above this then 32460 – 32860 seems to be eminent targets. A move above 32200 will assure the above levels. However a failure to keep up above this level may result into a pullback to 31450. The MACD is into the bullish zone while RSI is neutral with bullish bias.
NSE:BANKNIFTY
by BharatJhunjhunwala
This 12200 levels will serve as minor supportThe index has been consolidating in a sideways range since last two weeks. A triangle pattern is visible on the daily charts, the breakout is yet to occur. The prices are holding the TS line support tightly. This 12200 levels will serve as minor support while 12070 the KS line is an important support. Any redound should take place from these supports. Nifty is set to move to 12310, 12380 & 12500 levels. But when we look at the RSI, the momentum seems to lose its strength, I would really like the RSI to break up from the 60 levels which it is tested a multiple number of times.
NSE:NIFTY
by BharatJhunjhunwala